As in conventional bricks and mortar stores, Wilkens says that when determining how to price a product online, sellers must consider cost, wholesale cost and manufacturer’s suggested retail price. Sellers can check Amazon.com’s online profitability calculator for help. (https://salecalc.com/amazon). Aside from the monthly or per item fee, other possible fees that affect the seller’s profit include closing, fulfillment, storage, and packing and weight-handling fees; customers pay for shipping and gift wrapping. Potential costs also can include return allowances, advertising expense and freight allowance.
Wilkens says that “70% of sales occur from page 1 results, while the remaining 30% happen from page 2. When combating negative reviews, he said, “avoid any arguments, defensiveness or attitude.” Amazon.com charges sellers $2,000 for Vine, an optional program that generates legitimate, good reviews. Proceeds from sales are deposited by Amazon.com to the seller’s bank account every two weeks, minus applicable fees. An email alerts the seller of the deposit.
Become a Bestseller on Amazon.com by Adam Wilkens. 118 pages. $9.99
Eleanor O’Sullivan is an award-winning journalist who writes for Financial Advisor.